Gold extends losses, buyers still away

Mumbai: India gold extended losses on Monday, following global cues, and buyers stayed on the sidelines waiting for further falls, dealers said.

The benchmark April contract was trading 0.23% lower at Rs15,280 per 10 grams at 3:21pm, falling from a high of Rs15,350.

Dealers said gold demand remained weak despite the fall as prices stayed within sight of a record high of Rs16,040 struck on 20 February and buyers were waiting for a steeper fall before coming in to purchase.

“People are just waiting for a correction which is not happening,” said Pinakin Vyaas, chief manager of treasury at IndusInd Bank, who also trades gold.

April gold on Comex division was 0.49% lower at $925.5 an ounce on profit-taking at 3:22pm.

Traders across the world are keenly awaiting the outcome of the Federal Open Market Committee’s (FOMC) outcome on US interest rate on Wednesday to gauge the direction in dollar and precious metals complex.

The dollar and gold prices usually move inversely as they compete for funds, but the relationship has weakened in recent sessions as the global economic crisis has led to safe-haven buying in both.

The lack of demand also reflects in the prices quoted by banks as well as those quoted by jewellers.

“There is disparity of Rs200 between bank and local gold,” said IndusInd’s Vyaas added.